THERACLION (Alternext FR0010120402 - ALTHE) (Paris:ALTHE), a
company specializing in leading-edge medical equipment for echotherapy,
today announces its consolidated half year results ended June 30, 2016,
approved by the Board of Directors on October 13, 2016 and having
undergone a limited review by the auditors. The certification report
will be issued after verification of the interim financial report.

David Caumartin, Theraclion CEO, said: "After an exceptional 2015’s
year end, Theraclion continues to grow in the first half of 2016 with
the signing of 5 trade agreements. Germany, thanks to coverage
agreements obtained from several health insurance companies, has
transformed into Theraclion’s lead market. The first half has set the
stage for a sharp acceleration in sales while controlling our operating
expenses. The success of our capital increase in August supports our
goal of further development of our existing markets and expansion to new
territories and new therapeutic indications. "

Consolidated results - First half 2016

Profit & Loss

In K€

30/06/2016

30/06/2015

Var. %

Revenues

463

38

1 119%

from equipment sales

294

0

na

from equipment rent

101

32

212%

from consumables

56

6

880%

from services

13

0

Subventions

51

14

264%

Other products

8

4

50%

Operating income

523

56

834%

External changes

-1 979

-1 747

13%

Other operating expenses

-2 368

-1 743

36%

Net operating income

-3 825

-3 434

11%

Financial income

-135

-94

44%

Extraordinary income

-2

-6

-67%

Research tax credit

470

360

31%

Net result

-3 492

-3 175

10%

Average number of employees (FTE)

35

31

13%

Theraclion achieves € 0.5 million sales in the first half 2016, a
multiplication by 12 compared to the first half 2015

In the first half 2016, Theraclion achieved sales of K€ 463, an increase
of 1 119%. Over the same period, the company generated a sharp increase
in rental equipment income (+ 212%) and consumables sales (+ 880%)
driven by the tripling of the number of care centers utilizing
Echotherapy in routine clinical practice. The number of treatments
carried out in those sites also tripled over the period to 125
treatments.

In the first half 2016, the company registered 5 trade agreements: 2
Echopulse® sales in Germany, (including one which was transferred in
third quarter) and 3 contracts for the provision of equipment against
pay per use (2 in Germany and one in Italy). Theraclion’s echotherapy
solution is available in 20 sites (against 16 in 2015): 9 in Germany,
three in France, one in the United Kingdom, one in Spain, one in Turkey,
one in Switzerland, one in Italy, one in Hong Kong, one in Korea and one
in Taiwan.

Effective cost control

Theraclion continues its marketing and R & D efforts while rigorously
controlling its costs and operating expenses which grew in proportion
with the company’s growth in head count from 31 employees at 30 June
2015, to 35 at 30 June 2016. It is to be noted that the operating
expenses of first half 2016 decreased by 9% over the second half of 2015
excluding cost of sales.

Comparing H1 2016 versus H1 2015, purchases of goods and other purchases
and external expenses rose 13% to K€ 1,979 versus K€ 1,747. Other
operating expenses amounted to K€ 2,368 versus K€ 1,743 in 2015, an
increase of 36%. The company maintained its sustained investment policy
with total R & D costs amounting to € 1.8 million versus € 2.6 million
for the full year 2015.

After taking into account the financial result in loss of K€ 135 over
the year, in particular linked to the financial interests of a repayable
advance from BPI, the consolidated result for the first half 2016 was a
loss of K€ 3,492 compared to a loss of K€ 3,175 for the same period in
2015.

Cash position

At June 30, 2016, Theraclion’s available cash totaled K€ 2,017 versus K€
3,753 on 31 December 2015. Excluding the impact of capital increases in
cash in the first half totaling € 2.1 million, the monthly cash burn of
the company is up to around K€ 870 , which is due to significant working
capital effects (around K€ 700) related to advance payments and
purchasing of equipment for sale in the second half.

Post first half 2016 closing events

Successful capital increase with preferential subscription rights
(9.6 million euros, or 100% of the target), with over 80% of exercise of
the subscription rights.

The Company has successfully conducted a capital increase with
preferential subscription rights which took place from 26 July to 5
August 2016. This has raised a total gross amount of € 9,629,337 through
the issue of 1,610,257 new shares at a price of 5.98 euros.

This has empowered the company to pursue its development within existing
markets, especially in Germany, to continue conducting its clinical
studies, including access to the two largest markets of the United
States and China and to initiate extension of indications to breast and
thyroid cancers.

By subscribing 51.6% of the securities offered to the capital increase,
the Chinese health group Furui, now Theraclion’s second largest
shareholder, holds 19% of the company.

In the same process, the funds managed by Truffle Capital, founder &
historic shareholder, now hold less than 50% of Theraclion shares.
Truffle, whose mission is to support the creation of innovative
companies, decided to give up its seat on the Board of Directors of the
Company. "We are delighted to see Theraclion’s commercial progress
and growth to maturity", commented Dr. Philippe Pouletty, MD,
partner and co-founder of Truffle Capital. "Truffle Capital aims to
accompany younger companies. This is why we wanted, after 12 years, to
no longer be part of the board. We are also convinced of the promising
future of Theraclion and are proud to remain the reference shareholder."

Extension of reimbursement in Germany to a member of the largest
German insurance group health and continuation of the process to obtain
an early repayment in France

In the first half, the Company signed four trade agreements in Germany:
two sales, one delivered in the third quarter, and two contracts for
provision of equipment against pay per use. These successes resonate
with an increasing number of people for whom echotherapy is reimbursed.
Theraclion is pleased to announce the signing by the German insurance
company, Allgemeine Ortskrankenkasse (AOK) Bremen / Bremerhaven of a
reimbursement agreement for echotherapy treatment of thyroid nodules and
breast fibroadenomas. AOK Bremen / Bremerhaven is part of the AOK group,
Germany’s largest health insurer with 25 million members.

On 25th January 2016, Theraclion announced that it filed its application
to Forfait Innovation which is a path to reimbursement by special
dispensation for treatments and innovative medical devices intended to
expedite market access for new technologies. Funding is distributed to
collect clinical and health economics data to provide the missing
information needed to compare the innovation with the standard of care.

On June 21st 2016, the Company received a request for clarification from
the High Authority for Health (HAS) to which it replied on 5th
September. On October 7th, the company received confirmation of the
continuing review of its application for Forfait Innovation by DGOS
after validation from HAS of the required criteria. A final decision is
expected by the end of the year.

Echopulse® demonstrates positive clinical results in 5 studies in the
United States, Europe and Asia for the treatment of breast fibroadenomas
and symptomatic benign thyroid nodules.

At the 5th International Symposium on focused ultrasound (FUS
Symposium), the presentation of data from 5 studies demonstrated even
more promising clinical results from echotherapy. The symposium was held
from 28th August to 1st September 2016 in Bethesda, USA. Organized by
the Focused Ultrasound Foundation, the international symposium on
focused ultrasound is the largest international conference dedicated to
therapies using High Intensity Focused Ultrasound (HIFU), bringing
together each year the most accomplished experts, researchers and
practitioners in the field, alongside key industry players.

On August 31st, 2016, Theraclion announced the receipt from US health
authorities (FDA) of an approval for its IDE application
("Investigational Device Exemption"), and therefore the approval to
proceed with a clinical investigation of the Echopulse device in breast
fibroadenoma patients, conducted through the 513 (f) (2) process.

About TheraclionTheraclion is a French company specializing
in high-tech medical equipment using therapeutic ultrasound. Drawing on
leading-edge technologies, Theraclion has designed and manufactured an
innovative solution for echotherapy, the Echopulse®, allowing
non-invasive tumor treatment through ultrasound-guided high-intensity
focused ultrasound. Theraclion is ISO 13485 certified and has received
the CE mark for non-invasive ablation of breast fibroadenomas and
thyroid nodules. Based in Malakoff, near Paris, France Theraclion has
brought together a team of 35 people, 50% of whom are dedicated to R&D
and clinical trials. For more information, please visit Theraclion’s
website: www.theraclion.com.